Tuesday, March 25, 2008

Gas in Europe $3.50-$4.40 per Gallon, FOR TAXES

THE ECONOMIST--Petrol prices have risen as the oil price has increased. But the driver's pain at the pump differs across countries, dependent in part on the proportion of the cost that is paid in taxes. Turks have the most reason to feel aggrieved, closely followed by the British. Americans still enjoy relatively cheap fuel—they pay far less in tax than drivers elsewhere.

For Americans, it could be a lot worse. Just the gasoline tax in Turkey, U.K., Netherlands, Germany, S. Korea and France ranges from about $4.40 in Turkey to $3.50 in France, which is more than gas costs here INCLUDING all taxes!

6 Comments:

You point out that it could be worse in the U.S., but it could be much better too - we should get rid of federal gas taxes. It is regressive (I don't really care about that, but it sounds nice for convincing economic dummies), hurts the poor (same thing) and the government will just waste the money they get anyway. End the gas tax!

Don't consumers end up paying thousands of dollars in increased capital costs for fuel efficient technology (and end up with lighter and more dangerous vehicles)?

What is the difference between the cost of gas taxes and a Toyota Prius which requires years of energy savings to make up the increased capital costs?

An expense is an expense.

Marko,

With regard to the gas tax being "regressive", consider also that a consumption tax usually penalizes those who consume most, ie. wealthier consumers (those most likely to drive Hummers, Ferraris, Bentleys etc.). Do you really feel sorry for the millionaires with their private jets or their arduous commute from Long Island to NYC?

Is there any tax which can be justified on the basis of exemplary fiscal management of Washington?

Well, I think we should be consistent. If we are going for a use tax like a gas tax, then only people that send their children to school should pay property tax (school tax), only people on medicare and foodstamps should pay that share of income tax, and so on. While that seems fair, I don't think it will generate much revenue.

I don't know - I just want to lower all taxes so that the federal government has to go begging for the money for their huge charity plans. The feds do much, much more than I believe they should be doing and a small flat tax would probably be enough for defense and other measures required to keep the market free.